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The strong turnaround of General Motors has caused the German government to deny the responsibility of bailing out Opel, a German unit of General Motors. GM doesn't want to fund the total 3.7 billion euro bill stating that since Opel is a European car company it's a problem of the European tax payers. Who do you think should pay for the bailout? Or should Opel fail?
http://www.reuters.com/article/idUSTRE64N3HV20100524
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This doesn't surprise ne. After Germany had to aid in the Greek bailout I'm sure the government does not want to spend any more money to bail out another company. In addition, a lot of countries blame the financial meltdown in the United States for the economic distress in their countries. This is probably the first of many situations where other countries will depend on the United States and American companies to clean up the mess our country created.
ReplyDeleteI agree with Chloe. The German government is tired of having to bailout the mistakes of other countries, so it does not surprise me that they do not want to fund GM's Opel company. If GM wants its company to succeed, it has to be willing to make difficult decisions. If it is willing to shut down its international brands, then it may be able to focus more energy back home. GM has already shut down numerous plants in Michigan and in doing so hit the economy hard. If Germany is willing to face a potential shut down, then that is a tough choice that it will have to make.
ReplyDeleteI can understand why GM would want Germany to pay for some of this bailout, who wouldn't want to save $1.6 billion? The unfortunate side of this is that GM cancelled the sale of Opel because the deemed it to be crucial to their "global sales strategy" and now they are unwilling to back that up.
ReplyDeleteSince Opel is a GM subsidiary, it should be GM's responsibility to take care of it. Money should not come from public taxpayers the U. S. However, if GM is unable to come up with the money, then Germany faces an awkward decision. It's not a German company but employs lots of German labor. This would be a good case study for an International Business course.
ReplyDeleteI agree with Noah that it is GM's responsibility. There is no reason why tax payers from the United States should pay for this. If "were all in this together" then I believe GM should take care of it.
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